Evolution of International Regulatory Scene in the Year 2022
In a concerted effort to enhance financial integrity and combat money laundering, several countries have announced updates to their Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) rules for 2022. This article provides an overview of the key changes in the United Kingdom, European Union, United States, Switzerland, and Estonia.
United Kingdom
Following Brexit, the UK is updating its AML regulations, building on the EU’s 5th Anti-Money Laundering Directive (5AMLD). Key changes include implementing the Economic Crime Act 2022, refining risk-based AML/CTF measures to reduce administrative burdens, aligning cryptoasset firms’ due diligence with Financial Action Task Force (FATF) standards, and clarifying definitions to better target risks such as excluding reinsurance contracts from certain rules.
European Union
The EU is advancing the AML framework with the 6th Anti-Money Laundering Directive (6AMLD), which enhances criminal law provisions against money laundering and terrorist financing. It also established the EU Anti-Money Laundering Authority (AMLA) to harmonize AML enforcement and is implementing new regulations like the Markets in Crypto-Assets Regulation (MiCA) and Digital Operational Resilience Act (DORA) to cover emerging technologies and digital payments.
United States
While the search results do not provide specific details on US changes for 2022, the US AML/CTF regime continuously evolves to address emerging risks, typically focusing on enhanced transparency, beneficial ownership reporting, and stronger sanctions compliance aligned with global standards.
Switzerland
No direct updates were found in the search results for Switzerland’s AML/CTF changes in 2022. Switzerland traditionally aligns with FATF recommendations and updates its laws accordingly, often emphasizing financial sector integrity and international cooperation.
Estonia
The search results do not contain specific information about Estonia’s 2022 AML/CTF changes. Estonia, as an EU member, follows EU AML directives and is likely implementing updates consistent with these, particularly strengthening virtual asset regulations and beneficial ownership transparency.
In Estonia, the minimum capital requirement will be raised for transfer services and set for wallet services, exchanges, ICOs, and similar platforms. The Financial Intelligence Unit decides whether to grant a virtual currency service provider a license within 60 days after receiving all required documents and information. The revised Anti-Money Laundering Act (AMLA) will require financial intermediaries to verify information received about the beneficial owner with the appropriate level of due diligence, regularly update customer data, obtain concrete indications that assets involved in the business relationship could be used in money laundering before filing a Suspicious Activity Report (SAR), and no longer have the Money Laundering Reporting Office of Switzerland (MROS) process SARs within 20 working days.
Virtual currency service providers will have to bring their operations and documents into compliance by March 18th, 2022, if the Act passes in Estonia. The fee for a VASP license (state fee) will be increased from €3,300 to €10,000. New schemes/arrangements should implement the PISA framework within one year of being notified that they fall within the framework's scope. The framework will complement upcoming EU regulations on crypto assets and international standards for global stablecoins.
The amendments in Estonia are aimed at Virtual Asset Service Providers (VASPs) operating in Estonia, including crypto exchanges, wallets, and decentralized platforms, ICOs, and other services. The framework will influence governance bodies of schemes and arrangements, participating payment service providers, technical service providers, and other third parties. The Eurosystem's PISA framework will cover electronic payment instruments, schemes, and arrangements, aiming to make the EU’s future payments ecosystem safer and more efficient.
Regulatory bodies focus on balancing effectiveness against operational burdens, enhancing cooperation, and addressing new financial crime risks linked to cryptocurrencies and digital services. Ongoing global efforts to enhance compliance, such as the European Commission’s removal of some jurisdictions from high-risk lists, reflect this focus.
- Besides updating its AML regulations post-Brexit, the United Kingdom will also focus on implementing the Economic Crime Act 2022 and aligning cryptoasset firms’ due diligence with Financial Action Task Force (FATF) standards, among other changes.
- Enhancing criminal law provisions against money laundering and terrorist financing, the European Union is implementing the 6th Anti-Money Laundering Directive (6AMLD) and establishing the EU Anti-Money Laundering Authority (AMLA).
- While the United States has not specified changes for 2022, its AML/CTF regime consistently evolves to address emerging risks, such as enhanced transparency, beneficial ownership reporting, and stronger sanctions compliance.
- Switzerland may not have direct updates for 2022, but it traditionally aligns with FATF recommendations and consistently focuses on financial sector integrity and international cooperation.
- Estonia, as an EU member, is likely implementing changes consistent with the EU AML directives, particularly strengthening virtual asset regulations and beneficial ownership transparency.
- Amidst ongoing global efforts to enhance compliance, general news highlights the European Commission’s removal of some jurisdictions from high-risk lists, reflecting a focus on balancing effectiveness against operational burdens, enhancing cooperation, and addressing new financial crime risks linked to cryptocurrencies and digital services. In the realm of personal-finance and investment, technology advances in the industry and finance sectors continue to shape business practices and opportunities. Furthermore, discussions in education-and-self-development forums revolve around the impact of these advancements on lifestyle, while sports, weather, and casino-and-gambling sectors follow their respective updates and trends.
